Thorny deficit hurts credit

Credit rating agencies agree that Greece's credit account deficit prevents the country from achieving an even more improved debt rating.

The country spent 14 years with a junk rating on its debt before achieving the highly sought investment-grade rating. But recent data published by the Bank of Greece concerning the first five months of the year raise concerns from analysts.

According to the data, the current account deficit from January-May 2024 stood at €9.09 billion, nearly 23% higher than the €7.39 billion posted during the same period in 2023. The rise in the consumer goods deficit is the main factor, as exports declined and imports rose.

Analysts agree that this deficit will be reduced by the end of the year, especially as tourism revenue will be included. But they note that this persistent weakness of the Greek economy is slowing down growth, and does...